President Donald Trump is threatening to impose a 100% tariff on wine and champagne imported from France unless the country eliminates its digital services tax on large American technology companies.

Trade Dispute

The warning came just hours before Trump departed for the Group of Seven summit in France, where trade issues are expected to be among the major topics of discussion between world leaders.

Speaking to the New York Post, Trump said the United States would have little choice but to respond if France continues to impose a 3% tax on major digital companies, many of which are based in the United States.

France’s digital services tax has been in effect since 2019. The measure applies to large digital companies generating significant revenue in France and globally. The tax primarily affects major U.S.-based technology companies, including Google, Apple, Meta, Amazon and Microsoft.

American officials have long argued that the tax unfairly targets U.S. businesses and creates an uneven playing field for American companies operating overseas.

The potential tariff increase could have a significant impact on French exporters. According to reports, the U.S. market accounts for roughly one-fifth of France’s global wine sales, representing more than $2 billion annually.

Original reporting: WOWO News/Talk (Fort Wayne) — read the source article.